Bells Court, the £2.2 million development, will begin construction in June 2015 and will be located on Bailey Street – just a five-minute walk from the city centre.

The two-storey urban warehouse block will comprise 29 studio apartments, with the development due to be completed and ready for student intake in summer 2016.

Amenities for the 9,500 sq ft development are set to include secure bicycle storage, an on-site laundry facility and a central courtyard garden.

Martin Copeland, managing director at Knight Knox, said: “It’s a very exciting time for Sheffield, with the council planning to deliver thousands more homes within the city limits to accommodate the rapidly growing population.

“We’re delighted to be providing the area with premium residential property and valuable investment opportunities, whilst enhancing our reputation in the student market with such a unique scheme.”

The development will be let and managed in its entirety by Coda Studios Ltd, while Crossbow Ventures Ltd will act as developer for the multi-million pound scheme.

David Cross, architect at Coda Studios Ltd, said: “Bells Court is a unique opportunity for Crossbow to develop a truly stylised development leveraging the history and heritage of the site into a bespoke development. All 29 apartments benefit from huge 1950s-style windows, high ceilings and period interiors – all located in S1, just a stone’s throw away from the hustle and bustle of the city.

“We’re sure this will be another ground-breaking and award-winning development.”